Nov. 10 (Bloomberg) -- Partner Communications Co. surged
the most in more than 10 years in Tel Aviv after Israel’s
second-largest mobile phone provider announced a network pact
with the wireless unit of Hot Telecommunication System Ltd.

Shares of the carrier with the second-most subscribers,
jumped 9.3 percent, the most since May 2003, to 31.68 shekels at
the close in Tel Aviv. The Rosh Ha’Ayin, Israel-based company
was the biggest percentage gainer on the benchmark TA-25 Index,
which added 0.2 percent.

The company said it’s entered a 15-year network-sharing
arrangement with cellular operator Hot Mobile for a joint
venture to operate and develop a shared cellular network.
Partner’s U.S. traded shares surged 8.2 percent to $8.46 on Nov.
8 on the news.

“The agreement should improve the competitive and cost
position of Partner and Hot Mobile in the mid-long term,” Roni
Biron, a Tel Aviv-based analyst for UBS AG, said in an e-mailed
note today.

Partner’s shares were among the worst performers on the
benchmark gauge last year as new wireless operators, including
Hot Mobile and Golan Telecom Ltd., entered the market in May
2012. The number-two carrier, which saw profits drop in the last
three quarters, is cutting jobs to reduces its costs and seeking
to enter other segments to boost revenue, Chief Executive
Officer Haim Romano said Aug. 14.

The accord was praised by the Minister of Communications
Gilad Erdan as benefiting consumers and ensuring carriers make
“full use of the radio spectrum,” according to a text message
sent to journalists.

Scailex Corp. surged 22 percent to 5.182 shekels, the
highest since April 9. The company has a 15.7 percent stake in
Partner, according to data compiled by Bloomberg.

Bezeq Negative

The news is a “potential negative” for Bezeq, Biron said,
as Hot Mobile currently has a hosting agreement with its
Pelephone Communications Ltd. unit which expires at the end of
2014.

“Hot may shift to Partner earlier,” Biron wrote.
Pelephone’s current hosting agreement with Hot Mobile is
estimated to contribute around 200 million shekels a year in
revenues, “mostly incremental to the bottom line”.